New car labels to use numerical ratings for fuel economy, emissions

WASHINGTON -- Window stickers will soon show how new vehicles rate on a scale of 1-to-10 on fuel economy and emissions, the Obama administration said today as it dropped a proposal to use letter grades.

The new labels, which go into effect starting with the 2013 model year, drew praise nearly across-the-board from dealers, automakers, consumer advocates and environmental groups.

The stickers also will show how much more or less consumers will spend on fuel over five years compared to the average new vehicle in the national fleet. Current labels limit the comparison to the class of vehicle; an SUV, for example, is compared only with other SUVs.

The Obama administration said the changes are the most significant in the stickers since the program began more than 30 years ago.

"The new labels will provide one of the more powerful consumer-information tools that buyers have ever had at their disposal," EPA Administrator Lisa Jackson said.

The stickers also will introduce a gallons-per-100 miles figure that will enable comparisons among electric vehicles, hybrids and gasoline-powered vehicles, according to EPA and the U.S. Transportation Department.

In addition, each vehicle’s environmental impact is included on the label for the first time.

Same as it ever was

The new stickers, like current labels, will feature most prominently mpg, with breakdowns for city and highway.

“We are pleased that the actual fuel-economy number is prominently displayed, as it has been all along,” National Automobile Dealers Association spokesman Bailey Wood said.

NADA, as well as automaker groups, had vigorously opposed the use of letter grades based on fuel economy and emissions.

The administration had tested the letter grades on consumer focus groups, which split over whether they were confusing or helpful, Jackson said.

The new label will contain two numerical ratings based on calculations: one for fuel economy and greenhouse gases compared to other vehicles, the other for smog.

“Nothing’s more accurate than a number in comparing vehicles,” Wood said. “The letter grade was more subjective.”

The new federal rules carry out a 2007 law that requires labels to put new vehicles in fleetwide context for fuel economy, greenhouse gases and smog-forming pollutants.

Good reviews

Consumer and environmental groups praised both the numerical ratings and the fuel-expense comparisons with a fleetwide average rather than just the class of vehicles.

“You’ll see extraordinary market pressure on car companies to make changes,” Consumer Federation of America spokesman Jack Gillis said. “Those vehicles that get ratings of just `1’ or `2’ will be stigmatized.”

Mark Cooper, the consumer group’s research director, said use of the fleetwide average “will enable customers to carry the number around the showroom and look at different classes of vehicles.”

While the labels must start appearing in 2013 models early next year, automakers can voluntarily adopt them for 2012 vehicles, the EPA said.

The Alliance of Automobile Manufacturers, whose members include Toyota, General Motors and Ford, praised the administration’s rules for using a single national label.

Automakers have been required to apply a separate label with emissions information for California vehicles, the Alliance said.

WASHINGTON – The U.S. Department of Transportation and the U.S. Environmental Protection Agency today are unveiling new fuel economy labels that will help consumers take advantage of the increased efficiency standards achieved under the Obama Administration that will save families money at the pump starting this year. The new labels, which are the most dramatic overhaul to fuel economy labels since the program began more than 30 years ago, will provide more comprehensive fuel efficiency information, including estimated annual fuel costs, savings, as well as information on each vehicle's environmental impact. The new labels underscore the benefits of the historic, bipartisan passenger car and truck fuel economy rule adopted under this administration by the EPA and DOT in 2010.

These improvements will give consumers better, more complete information to consider when purchasing new vehicles that are covered by the increased fuel economy standards. Starting with model year 2013, the improved fuel economy labels will be required to be affixed to all new passenger cars and trucks – both conventional gasoline powered and "next generation" cars, such as plug-in hybrids and electric vehicles.

Upon taking office, President Obama directed DOT and EPA to prioritize the development of new fuel efficiency and greenhouse gas emissions standards, resulting in the historic standards that will be represented by these new labels. This is the latest step in EPA's and DOT's joint efforts to improve the fuel economy and environmental performance of vehicles and to provide consumers with useful information to inform their purchasing decisions.

The 2010 fuel economy rule, developed with input from major automakers, environmental groups, and the states, will dramatically increase the energy efficiency of cars and trucks built in model years 2012 through 2016, saving 1.8 billion barrels of oil over the life of the program and the average consumer $3,000 in fuel costs.

In July, the administration plans to finalize the first-ever national fuel economy and greenhouse gas emission standards for commercial trucks, vans and buses built in 2014 to 2018. These standards are expected to save hundreds of millions of barrels of oil over the life of these vehicles and promote the development and deployment of alternative fuels, including natural gas. The administration is also developing the next generation of joint fuel economy/greenhouse gas emission standards for model year 2017-2025 passenger vehicles and expects to announce the proposal in September 2011.

The new labels announced today will help consumers take advantage of the new, more energy efficient fleet, allowing them to save money at the pump. Consumers will see the new labels in showrooms early next year, when 2013 models begin arriving. Automakers may also voluntarily adopt the new labels earlier for model year 2012 vehicles.

"President Obama's work to shape a Clean Cars program is fostering a marketplace of cutting-edge American vehicles that are more fuel efficient than ever before. The EPA and DOT are creating a new generation of fuel economy labels to meet the needs of a new generation of innovative cars," said EPA Administrator Lisa P. Jackson. "Today's car buyers want the best possible information about which cars on the lot offer the greatest fuel economy and the best environmental performance. The new labels provide comprehensive information to American car buyers, helping them make a choice that will save money at the gas pump and prevent pollution in the air we breathe."

"Our new fuel economy and environmental labels are a win for automobile consumers and for the nation's energy independence," said U.S. Transportation Secretary Ray LaHood. "These labels will provide consumers with up front information about a vehicle's fuel costs and savings so that they can make informed decisions when purchasing a new car."

• New ways to compare energy use and cost between new-technology cars that use electricity and conventional cars that are gasoline-powered.

• Useful estimates on how much consumers will save or spend on fuel over the next five years compared to the average new vehicle.

• Easy-to-read ratings of how a model compares to all others for smog emissions and emissions of pollution that contribute to climate change.

• An estimate of how much fuel or electricity it takes to drive 100 miles.

• Information on the driving range and charging time of an electric vehicle.

• A QR Code that will allow users of smartphones to access online information about how various models compare on fuel economy and other environmental and energy factors. This tool will also allow consumers to enter information about their typical commutes and driving behavior in order to get a more precise estimate of fuel costs and savings.

The new labels are required by the Energy Independence and Security Act of 2007.